In an effort to increase transparency over who owns and controls UK companies and assist with anti-money laundering initiatives, from 6 April 2016, UK companies and limited liability partnerships will be required to identify and keep a register of Persons with Significant Control (PSC) of that entity.
This register will be in addition to the usual registers of Directors and Shareholders and must be filed at Companies House.
Obligations on companies
In this regard, companies will be required to:
- Take reasonable steps to identify the people with significant control over the company;
- Record this information on the company’s PSC register;
- Provide this information to Companies House as part of the annual Confirmation Statement (formerly the Annual Return); and
- Update the information on the PSC register when it changes and ensure the information at Companies House is updated when the next Confirmation Statement is made.
Identifying a PSC
A PSC is an individual who meets at least one of the following conditions, directly or indirectly:
- Holds more than 25% of the shares in the company;
- Holds more than 25% of the voting rights in the company;
- Holds the right to appoint or remove the majority of the board of directors of the company;
- Has the right to exercise, or actually exercises, significant influence or control over the company;
- Where a firm or trust would satisfy the above conditions if it were an individual, any individual holding the right to exercise or actually exercise significant influence or control over the activities of that trust or firm.
The following information must be obtained from the PSC:
- Date of birth;
- Country, state or part of the UK where the PSC usually lives;
- Service address;
- Usual residential address (this will not be made publically available);
- The date on which the person became a PSC in relation to the company (6 April 2016 will be used for existing companies);
- Which condition for being a PSC is met, include the level of shares or voting rights if these conditions are met;
Individuals who are at risk of violence or intimidation if they are on the PSC register can apply to Companies House to have their information protected.
A company will be required to take reasonable steps to contact its PSC and confirm the information. Failure to comply will be a criminal offence and companies may impose restrictions on the shares and voting of people who withhold information.
Companies will have an obligation to make their PSC registers available for inspection on request at the company’s registered office or provide copies on request.
For an additional information or assistance in meeting the above requirements, kindly contact:
email@example.com | www.osiristrust.com
Telephone: +44 207 8110105